Correlation Between China Everbright and CIB Marine
Can any of the company-specific risk be diversified away by investing in both China Everbright and CIB Marine at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Everbright and CIB Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Everbright Bank and CIB Marine Bancshares, you can compare the effects of market volatilities on China Everbright and CIB Marine and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Everbright with a short position of CIB Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and CIB Marine.
Diversification Opportunities for China Everbright and CIB Marine
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and CIB is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank and CIB Marine Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIB Marine Bancshares and China Everbright is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Everbright Bank are associated (or correlated) with CIB Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIB Marine Bancshares has no effect on the direction of China Everbright i.e., China Everbright and CIB Marine go up and down completely randomly.
Pair Corralation between China Everbright and CIB Marine
If you would invest 28.00 in China Everbright Bank on February 23, 2024 and sell it today you would earn a total of 0.00 from holding China Everbright Bank or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Everbright Bank vs. CIB Marine Bancshares
Performance |
Timeline |
China Everbright Bank |
CIB Marine Bancshares |
China Everbright and CIB Marine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Everbright and CIB Marine
The main advantage of trading using opposite China Everbright and CIB Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright position performs unexpectedly, CIB Marine can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CIB Marine will offset losses from the drop in CIB Marine's long position.China Everbright vs. China CITIC Bank | China Everbright vs. China Merchants Bank | China Everbright vs. China Merchants Bank | China Everbright vs. Postal Savings Bank |
CIB Marine vs. U I Financial | CIB Marine vs. Heartland Banccorp | CIB Marine vs. United Bancorporation of | CIB Marine vs. US Metro Bancorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |